Thank you, Rudra. On behalf of Daulat Capital, I welcome all the participants on the call and thank the management of Satin Creditcare Network Limited for the opportunity to host this call.

For today's call, I have with me the members of the management and leadership team. This includes Dr.

H P Singh, Chairman-cum-MD, Mr. Jugal Kataria, Group Controller, and Ms.

Aditi Singh, Chief Strategy Officer. With this, I now hand over the conference to Dr.

H P Singh, Chairman-cum-MD, to preside over the call. Thank you and over to you, sir.

Thank you. Good morning and thank you for joining us to discuss our performance for Q3 and 9 months of financial year '25-'26.

I trust you had the opportunity to review our financial results and investor presentation. In case you haven't, you can find them on our website and the stock exchanges.

While summarizing our performance, not just for the last quarter, but for the past 35 years, one thing is consistent: that our focus has always been on long-term value creation, balancing growth with responsibility, and ambition with discipline. Inclusion for us is not merely a concept, it's a conviction.

It guides every decision we take. Our progress has been shaped by thoughtful product diversification, a strong understanding of rural and semi-urban markets, and the application of robust, process-led technology to serve customers efficiently and responsibly at scale.

This approach has enabled us to deliver stable and consistent performance, even in a challenging operating environment. We are very focused on data-led analytics backed by technology and processes, which leads to our distinguished performance.

I am particularly proud to share that we have delivered 18th profitable quarter in a row. Our credit cost for the last 6 years has been amongst the lowest at 3.3%, and ROA amongst the highest at 2.1% on a standalone basis.

We have grown despite a sector-wide degrowth and current industry headwinds. This is a testament to our prudent underwriting, strong governance, and deep-rooted presence in our core markets.

Our subsidiaries reflect our intentional strategy of diversification, each created to address real and evolving needs. From enabling access to affordable micro housing to supporting the missing middle through financing sustainable and emerging businesses, where traditional credit systems fall short, our portfolio is designed to complement and strengthen our core lending franchise.

Technology remains a key enabler of our growth. Our investments in technology and internal capabilities have enhanced efficiency, improved risk management, and strengthened controls.

This foundation gave us the confidence to extend our technological offerings beyond the group, leading to the creation of Satin Technologies Limited. This month, Satin Technologies acquired 51% stake in Katrino Labs, a deep-tech cybersecurity company focused on post-quantum cryptography.

This strategic step reinforces our belief that foresight, preparedness, and innovation are essential to building a future-ready institution. A very proud moment for Satin Creditcare Network Limited was achieving a score of 59 in our first-ever S&P Global Corporate Sustainability Assessment, CSA.

Our performance was driven by strong human capital management, business ethics, and risk and crisis management practices. This recognition further strengthens our position as a credible and responsible participant in India's sustainable finance ecosystem.

In a country with over a billion aspirations, inclusion cannot be uniform. It must be thoughtful, compassionate, and courageous.

This belief defines the Satin Group and continues to guide us as we work towards sustainable growth and shared prosperity. Coming to the performance of SCNL, we continue to demonstrate strength where it matters most: consistency, resilience, and value creation.

We have delivered growth of 7% year-on-year, reaching an AUM of ₹11,482 crore. We raised ₹7,151 crore during 9 months FY26 and added 363 branches.

No clients having more than 3 loans, reflecting healthy credit discipline. We have also introduced Natural Calamity Insurance and Credit Guarantee Fund for Micro Units, CGFMU, to further de-risk our portfolio.

Our capital adequacy has consistently remained well above regulatory requirements, staying above 25% over the last 27 quarters, providing ample headroom for growth and innovation. Equally important is the strength of our leadership.

Our CXO team has an average tenure of nearly 10-plus years, ensuring continuity, stability, and a long-term strategic vision in an industry where leadership churn is common. Speaking about our commitment to compliance and good governance, I'm happy to share that there are zero incremental provisions on account of labor codes.

On a consolidated basis, our AUM grew by 10% year-on-year to Indian rupees 13,341 crore. Disbursement momentum remained steady with ₹8,094 crore disbursed in 9 months FY26 on a consolidated basis, up 7% year-on-year, and ₹7,382 crore on a standalone basis, representing a 6% year-on-year growth.

Our distribution network continues to expand thoughtfully. On a consolidated basis, we now operate through 1,987 branches, covering 558 districts across 26 states and 5 union territories.

On a consolidated basis, branch count increased by 452 since Q3 FY25. This extensive geographic presence strengthens our ability to serve economically underserved and remote markets.

As of the quarter-end, our consolidated client base stood at 32.7 lakhs. On asset quality and risk management, as of Q3 FY26, PAR 90 levels improved to 3.3% at ₹287 crore on standalone basis, reflecting stability and disciplined credit management.

This consistency underscores strong client engagement and robust field-level execution. We held on-book provisions of ₹272 crore, representing 3.2% of the on-book portfolio, well above RBI requirements of ₹141 crore.

This also includes a management overlay of ₹12 crore. For Q3 FY26, 25-26, revenue stood at ₹753 crore, reflecting 10% Y-o-Y growth on a consolidated basis.

Net interest margin was 14.25% on a consolidated basis and 14.71% standalone. Operating expense ratio stood at 7.35% consolidated and 7.23% standalone.

Loan loss ratio on a standalone basis was 4.23%. On a consolidated basis, ROA and ROE stood at 2.22% and 10.82%, respectively.

Standalone ROA and ROE stood at 2.33% and 9.57%. PAT for the quarter stood at ₹72 crore at consolidated level, up by 404% Y-o-Y.

On liquidity and capital position, CRAR stood at 24.64%. Liquidity position remained strong with ₹2,283 crore of balance sheet liquidity and ₹2,206 crore of undrawn sanctions standalone.

For FY25-26, we continue to target an improvement in credit cost as compared to FY24-25, which was 4.6%, supported by tighter underwriting, improved collections, and deeper customer engagement. On the industry outlook, we remain confident in the long-term potential of the rural financial services sector.

With a large portion of India's population still outside formal credit systems, the need for responsible small-ticket financing remains strong. While the sector is navigating a transitionary phase, we believe the steps being taken today will result in a more resilient, sustainable, and profitable cycle ahead.

The rural economy is resilient, and a good monsoon led to bumper harvests, thus elevating the income levels. We also see a rise in aspirational spends in rural economy, and Digital India is creating a scope for more product innovation.

On the subsidiary performance, Satin Housing Finance Limited AUM has touched ₹1,101 crore, Y-o-Y growth is 26.3%, and CRAR of 61.96%. Satin Finserv is ₹759 crore, Y-o-Y growth of 58.4%, and CRAR of 36.12%.

Satin Growth Alternates Limited has applied for license with SEBI, and we are awaiting the same. It is going to be one of its kind, AIF Category II fund, which is women-led and shall focus on women-led and green MSMEs.

On governance, ESG and recognition, our ESG focus continues through carbon footprint assessment and targeted emission reduction initiatives. Following our materiality assessment, we continue to focus on 21 material topics critical to long-term sustainability.

We are proud to share recognitions received during the year, including [Elaven?] Award: Best Women Friendly Institution 2025, Watson Financing Award, and Brand Wagon Award for excellence in BFSI sector campaign, reflecting our commitment to excellence, innovation, and inclusion.

Thank you once again for joining us today and for your continued trust and support. As we move forward, we remain committed to building a stronger, more inclusive, and purpose-driven organization.

We are confident that we shall continue to outperform. With this, I would now like to open the floor for questions.

Thank you.

Hello.

Hello.

Hello. Yeah.

Good morning Mr. Singh and all the Satin team, and congratulations for a good set of numbers.

Sorry to interrupt, sir, but you are not sounding clear. Okay.

Hello. Hello.

Yeah. Yes, a bit better.

Good morning. Good morning Mr.

Singh. Congratulations for a good set of numbers.

have a couple of questions. Sir, we have observed the Satin maintaining relatively high liquidity on the balance sheet.

Would the management please elaborate on the rationale behind this strategy? While high liquidity always generates negative ROE, will you keep such high liquidity going ahead also?

My first question.

Let me answer the first question and then I'll probably go to the second question. Yeah.

I think this was kind of deliberate that we kept high liquidity because of the headwinds in the industry, liquidity was kind of very, very challenging for a lot of players. We thought that it is very prudent during these times to keep high liquidity.

This is not going to be the norm for the future. We'll definitely bring it down once the situation eases, and it is easing now for the entire sector.

It wasn't a problem for us, but I think we were a little conservative in keeping the excess liquidity.

Just to add, this is the quarter-end number. On an average, we keep about ₹1,500-₹1,600 crore of liquidity, which is broadly 45 days of disbursement.

Quarter-end numbers are slightly elevated because we get a lot of funding towards the quarter-end.

Okay. My second question is, what factor helped Satin to reduce cost of borrowing almost 200 basis point down on quarter-on-quarter basis?

Our gross yield also reduced in same manners. May we know the reason?

Is it lower cost of borrowing passed to customer or anything else? Also, I have another one questions after that.

For us, I think, because of the repo rate going down, I think we were able to manage, because of our, again, good portfolio quality and profitability, we were able to manage to get our cost of funds down from where we were. Having said that, I think, for us, I think, looking at the future, we feel that if there is any more any more repo rate going down, I think we will probably now, since we have a very stable NIM, we would probably like to pass on maybe, any decrease in cost of funds to our ultimate borrower.

That is what we feel that we can do, because we've got a very healthy and a stable NIM which is there,

you know. Surprising

to see—

Mr. Sharma, yeah.

Aditi Singh here. One clarity: when you are saying it has reduced by 200 bps, you are actually looking at the yield curve or the DuPont analysis.

One thing I would like to again bring to your notice is that we had actually given out the commentary last quarter that due to MTM gains and the corresponding forex expenses, both yield and the cost of borrowing were inflated last quarter. If you want the absolute number, the yield was increased by ₹83 crore due to MTM gains, and the cost of borrowing increased by ₹74-odd crore.

Q-o-Q, if you see, you will find a big variation. Yes, the cost of borrowing has come down, but not by 200 bps.

The NIM, I will just highlight the NIM to you. If you see the NIM from last quarter to now, it is more or less the same or stable.

Now you can ask the third question, please.

Okay. Understood.

Any outlook for cost-to-income ratio for quarter 4, ROA, ROE growth guidance for quarter 4 and next year? May I know the reason for negligible ROA, ROE for subsidiary like Satin Housing and Satin Finserv?

Last, recently your board approved a right issue, put some light on right issue also.

Mr. Sharma, I think, what we've been able to do, our focus is towards subsidiaries also, but these bases are very small.

I think, they would have lower ROAs right now in the initial phases because they are in an expansion mode. They're opening branches, and I think, for us, it is more to look at If you look at the look at the the percentage of increase over there, it's about 40%-50%, year-on-year.

I think, it's a lower base, but we've crossed our first milestone in housing that we've crossed about ₹1,000 crore, and I think we'll be probably crossing our first milestone for Finserv also, by crossing our ₹1,000 crore pretty soon. On our guidance, I think, we're very clear that, for us, we had stated that we will bring down our our credit cost from 4.6%, which was for for the last year, down from there.

We already have achieved 9 months by 4.52%, there's a slight dip over there. If you look at the quarter, I think, for us, the credit cost is 4.23%.

Now having said that, our whole endeavor is to end the year probably at around 4%, which will be 50 basis point down from, what was there last year. We're very hopeful that we'll be able to achieve that, and that is what, I our guidance probably remains for that there, you know.

The right— What about rights issue announced?

Rights issue, subsidiary mein invest ke liye—

Are you talking about investment in Satin Finserv?

That was the rights issue. We put in capital.

We have put in ₹50 crore of capital in Satin Finserv because growing fast. Since it is a wholly owned subsidiary, it is being done through the rights way.

The same we have done in January in Satin Technologies also because that is also a wholly owned subsidiary. We are investing money in the subsidiary through rights issue basis.

It was not for Satin.

Hope this clarifies.

It is not for entire SCNL, Satin

Credit. No.

This is for the Finserv, for the subsidiary, because we are the 100% shareholder for wholly owned subsidiary. No, it's a wholly owned subsidiary, that's why.

Sir, last, cost-to-income ratio, what will be the guidance for quarter 4 and entire next year?

No guidance. I think we are looking at ROA to be very specific, and I think that will cover probably our cost-to-income ratios also.

Hopefully we want to increase our ROA. It has started increasing.

I think you'll see maybe results in that, and then correspondingly in our cost-to-income ratios also.

Okay. Thanks.

Best of luck for the entire team. Thank you so much.

Thank you, ji.

Hello?

Yes, I can hear you. Please go ahead.

Yes, sir. Sir, what percentage of our AUM is currently under CGFMU scheme?

This is my first question.

Right now it's not there. We just got our approval for the CGFMU scheme.

We are also now waiting for the credit guarantee scheme, which probably would be there. We're just waiting for that.

Once we have clarity on what is there, I think then we'll start working on that in our AUM. Right now, it's Nat Cat Insurance, which is there for all our borrowers.

Sir, is our current situation comfortable, means we can accelerate for high disbursements?

We've said that we will grow by 10% to 15%. I think we remain steadfast on that.

We've already grown 10% Y-o-Y in the last quarter if you look at it. I think we are on course to do that.

We have increased our branch at a very high pace. That can result in—

No, that's how growth happens.

Yes. Existing branches can also disburse loan as the industries was on slowdown last year.

The already existing branches are already doing that, but we wanted to add more branches, basically. That is how we are looking at growth to probably come in.

Our credit cost is expected to decrease in Q4 of FY26?

Absolutely.

Sir. Thank you.

Thank you.

Hello?

Hello, sir. Thank you for taking my question.

Sir, as things seem to be improving in the MFI industry, what is your thoughts on the same? Given things seem to be improving, what is the guidance on AUM for next year and on the credit cost for next year, sir?

I think we've still not issued our guidance for the next year, but I have said overall we're looking at 10% to 15% growth in terms of our AUM. In terms of credit cost, we said that we'll bring it down this year.

We've already started bringing it down. Going forward, there's absolutely no guidance, but one thing which we can probably tell you, the credit cost will start going down further ahead from where we are.

If you look at the industry, I think the industry is also now coming back on its feet. I think the headwinds are practically over.

You can see green shoots now coming in. I think overall, it bodes well for the industry as well as for us.

Sir, given in the past we were going at much faster rate, why do we want to grow at only 10%-15% for the next year, sir?

We want to have a very cautious growth. That's one.

The second reason is, we are growing our subsidiaries pretty strongly. That's another reason.

For us, our hands are completely full by looking at all these categories and the asset classes which we are building up. For us, I think at a 10% to 15% growth in the microfinance space is probably very cautious and very good.

We want to acquire premium customers. Our underwriting should be amongst the best.

We want to maintain a very robust asset quality. Growth with essence of higher profitability, underwriting, and asset quality, probably, is what our forte is.

That is what we are probably achieving for.

This 10% to 15% is the MFI growth assumption, or full company growth in terms of

AUM, sir? Just the MFI.

I told you, the base for the subsidiaries are small. They've grown by about 40%-50%.

They will continue to grow by that same percentage numbers over there.

Got it, sir. Sir, on ROA or ROE, any estimate for next year would you like to give?

General this thing, it'll be better than what we are right now.

Got it, sir. Thank you, and all the best.

Thank you so much.

Thank you for taking up my question.

Thank you. Actually, my question was earlier asked.

If you can provide me the timeline when we will be able to put claims under this CGFMU? I think we are still waiting for the guarantee scheme to come in from the government.

I think it is anytime soon. The moment it comes in, we'll look at the broad parameters and the terms to how do we really look at it.

I think what we've done in our first instance, we've actually taken this climate insurance, which is Natural Calamity Insurance. That probably gives us maybe a little bit of cover in terms of natural calamities which we normally suffer from, monsoons and floods and everything.

That we've taken our first cover. I think we're just waiting for the scheme to come in.

The moment it comes in, I think it will probably be added on to how we look at the AUM.

First quarter, can we expect in this upcoming new year?

Hopefully. Depends on when it comes, when the government announces it.

I think it'll just take us a very short time to probably understand that and then put and enforce it.

Yeah. Thank you.

Once again, congratulations for good set of numbers.

Thank you, sir. Thank you so much.

Sir. Thank you for the opportunity, and very good set of results.

Broadly just two questions. One is that while you have already infused capital, can you just maybe clarify, would any other subsidiary would need further, or are we good on the other subsidiaries front, all right, considering that we are growing strongly?

See,

we go according to how they are growing. I think that is probably one of the benchmarks we do.

They're still right now very highly capitalized. Whenever we require, I think we still have sufficient buffer in terms of capital, internal accruals in the parent company, that we are able to infuse it.

Right now, it remains rangebound within that scope. If we feel that there is a requirement in terms of the way we did an acquisition, it was a small acquisition we did, but with a lot of white space, valuation in terms of looking at the future.

I think for us, we will only take it when we feel that we require to raise more capital at that point of time. Right now, I think we are fully geared up to do whatever we have to do in terms of our capital buffers.

Sure. Secondly, on the liability side, what is our dependence today on maybe overseas?

Overseas has now increased to about 15% in the overall metrics of So, 70% is banks, and about 15% is overseas, and I think about 7-odd percent, if I remember correctly, is about DFIs, which is there. If we club both of them together, it's about 22% which is foreign money.

To be very honest with you, we're getting a very big traction in terms of foreign money which is coming in. In fact, we just attended a conference, and there's been a lot of valuable insights coming in for at least our company over there.

We'll be going forward with that. We have lesser dependency now on domestic funds as was earlier.

No, sir. That's great to know.

Just also maybe, sir, if you could also help understand that today, obviously, all this 22 would be fully hedged, is quite—

Yes. Everything is fully hedged.

Absolutely. Yes.

Ha.

Sir, on a fully hedged basis Sure. Sir, on a fully hedged basis, what is the cost differential today between the domestic and the foreign?

We look at the overall IRR. It comes basically around the same where we are raising domestic funds.

In fact, I think maybe we got slightly lower. All put together: the hedging, the cost, as well as everything put together, it comes on that.

Right.

This could be a little more, I think, sticky in terms of they are largely long-term in nature, which is good. They're long-term.

Average maturity is normally about 3 and a half years, but we're getting some funds which are 4 years and 5 years.

Sure. Sir, this last question: while very initial days, but I think one or two of the NBFCs, MFIs have been highlighting not a very big concern, but a very preliminary concern around the SIR issue, especially in adjacent areas of West Bengal.

Have we faced any in terms of maybe any concerns there? That's the last question.

There is,

I would like to put it on record, there is no concern as of now. If you look at our state collection efficiencies which we've highlighted in the investor presentation, we've performed very well in every possible top states of ours.

There's absolutely no concern right now in West Bengal also.

Great, sir. Good to know that.

Thank you and best of luck. Thank you.

Thank you, Rithika. Thank you so much.

Good morning, sir. Thank you for the opportunity.

I just had a bookkeeping question. Could you please share the write-off numbers for 9 months FY26, FY26?

₹273 crore. Right-off

numbers are about ₹273 crore.

Got it. Could you also please share the same for third quarter?

Sorry?

Third quarter, ₹160 crore.

Third quarter, 1 116. 116.

₹160 crore.

160, 1 sorry, ₹160 crore.

Got it. Thank you.

Thank you.

Hello. Am I audible?

Yes. You are.

Please.

Yeah. My first question is, some of the geographies are performing very well like Assam, while others are kind of not performing that much.

Any specific reasons for West Bengal and Bihar not performing well?

They are performing well. If you look at the collection efficiency numbers, they are pretty good.

Assam, yes, is an outlier. We have 100% over there.

If you look at Bihar, it's about 95.4%, Uttar Pradesh 99%, if you look at West Bengal, which is about 94%, Punjab is there. I think it is not something which probably will be static or maybe the same across in all the geographies.

There will be variation, but if you look at the overall collection efficiency, I think that probably sounds good, which is at about 98%. Over there, that's one of the things which you should look at.

The second, which is more important for us is, to look at the ex-bucket collection efficiency, that's 99.8%. I think state-wise, there could be variation and everything.

They're fine. Sometimes we really have to battle also legacy issues from the sector, from other this thing across.

Therefore, a particular state to probably not perform that very well. I think overall, 98% and 99.8% is probably the figures to probably look forward to.

My second question is, in terms of expansion, which are the geographies we are targeting to expand more? Are there any focused geographies?

Yeah. When we opened up these 400 branches of ours, we took a conscious call of diving deep into the existing geographies.

We are also adding up Kerala, which was one state which was missing in our whole portfolio. I think we just hired a couple of people for Kerala.

I think that'll be up and running maybe in the next couple of months. It's the same, we want to expand into various geographies where we don't have a presence, plus also deep diving into the existing geographies as such.

My last question is, would you like to give any credit cost guidance for FY27?

I said it'll be better than what we are right now. If we end the year closer to 4%, I think it'll be that.

I can't issue a guidance right now basically, but definitely more closer to when we end the year, and then you're able to see that what we said, we performed that well and we are there, I think that'll be the right time for us to issue a guidance.

Since PAR 1 has fallen quite drastically, don't you think 4% is a conservative guidance for this year?

See, it goes quarter by quarter. We had first 6 months which was kind of difficult and challenging for the entire industry, but we were better off than the entire industry over there.

I think it's a follow-on which happens across over there. You will see over there.

It goes quarter by quarter. Absolutely.

Yeah. Thank you.

All the best for the next quarter.

Thank you.

Thank you everyone. This is Aditi Singh.

We have tried to take as many questions as we could, and we hope we were able to satisfy all your queries. Also, we have tried to give very elaborate details in our investor presentation, so that will give you a lot of insights.

Even if you could not discuss something over this call, still if you want to discuss or clarify anything further, I encourage you to get in touch with Valorem Advisors who are our IR advisory agency, or you can also reach out to me, [email protected]. I'm the Chief Strategy Officer here, and we'll also will be happy to look at your queries.

Thank you everyone. Have a great day.

Bye-bye.